Re:u/DeepFuckingValue and the GameStop Reddit mania
by milofeynman on Friday January 29, 2021 @08:16PM
(#25965006)
Could you explain who would "loan" these hedge funds shorts at these elevates levels? Or is that not how it works.
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Re:u/DeepFuckingValue and the GameStop Reddit mania
by koolba on Friday January 29, 2021 @08:55PM
(#25965238)
Anyone who has the stock. The loans are usually collateralized at 100+% and marked to market daily. For stocks this crazy the interest rates on the loans would be equally insane.
So any large institutions (ex: pension funds) holding the stock are making bank lending it out.